Maryland Short-Term Rental Laws (2026)

Maryland short-term rental compliance is primarily address-specific. The state imposes sales tax on taxable transient accommodations, while counties and municipalities control licensing, zoning, occupancy, safety, local hotel taxes, and operating standards. A tax registration or platform listing does not authorize a property to operate.

This 2026 guide uses current official materials from the Maryland Comptroller, Baltimore City, Prince George's County, Ocean City, and Worcester County. Hosts elsewhere in Maryland should confirm requirements with every county, municipality, zoning office, licensing authority, and tax collector responsible for the property.

Maryland Short-Term Rental Laws - Quick Answer

Maryland generally applies its 6% sales and use tax to taxable transient accommodations.
For intermediary bookings, the state taxable price generally includes the full amount paid by the guest, including intermediary markups and fees.
Maryland does not operate a universal statewide short-term rental licensing commission or one license that replaces local approval.
Baltimore City generally limits new short-term residential rental licenses to the owner's permanent residence.
Prince George's County requires a host license tied to the host's permanent residence, plus insurance, safety documentation, parking, and neighbor notification.
Ocean City requires an annual rental license and noise control permit for any rental and adds short-term rental requirements for stays of 30 days or fewer.

Maryland State Sales Tax on Accommodations

The Maryland Comptroller's Sales and Use Tax - Taxable Price - Accommodations guidance explains that an accommodation is the right to occupy a room or lodging as a transient guest. Covered providers include hotels and motels as well as individuals renting homes or rooms.

Maryland's general sales and use tax rate is 6%. The Comptroller's Business Tax Tip 8 confirms that rate for taxable sales. Local hotel, room, or accommodation taxes may apply in addition and can use different definitions, rates, exemptions, filing systems, and deadlines.

Taxable Price and Intermediary Bookings

When an accommodations intermediary facilitates a booking and charges the guest, Maryland's guidance treats the taxable price as the full consideration paid for the accommodation. That includes the provider's room charge and the intermediary's markup or service amount. Separately stated local hotel tax is excluded from the state sales-tax base.

Hosts should not calculate Maryland tax solely on the amount deposited after a platform deducts its fees. For every booking channel, preserve the guest-facing receipt, the platform's tax report, the payout statement, and the host's own record of additional charges.

Platforms and Direct Bookings

A hosting platform may collect Maryland sales tax or local hotel tax for covered transactions, but platform practices differ by jurisdiction and tax type. Hosts remain responsible for confirming:

Whether the platform collects the 6% Maryland sales tax.
Whether it collects the correct county or municipal hotel tax.
Whether the host must register and file returns even when the platform remits tax.
How cleaning fees, mandatory guest fees, and owner-collected charges are treated.
How direct reservations and extended stays must be reported.

Do not treat a platform's general tax statement as proof that the property's local tax obligations are complete. Compare the platform receipt with current state and local instructions for the exact address.

Baltimore City Short-Term Residential Rentals

Baltimore City requires a current short-term residential rental license. Article 15, § 48-6 prohibits operation without a license from the Housing Commissioner.

Permanent Residence Rule

Under Baltimore City Code § 48-7, a person generally may receive a short-term residential rental license only for the person's permanent residence. The City's definition uses a residence occupied by the owner for at least 180 days annually and serving as the owner's usual place of return, supported by specified documents.

Limited grandfathered or additional-unit rules can depend on prior licensing history and the exact property. A prior listing, property purchase, or management agreement does not prove that a new applicant qualifies. New applicants should use current Baltimore Department of Housing and Community Development instructions and obtain a property-specific determination.

Baltimore License Term and Fee

License fee: $200 per dwelling unit, subject to the City Fee Policy.
License term: Two years.
Renewal deadline: At least 30 days before expiration.
Transfer: Do not assume a license transfers with a sale, ownership change, or change in the licensed unit.

The fee and biennial schedule appear in § 48-8 and § 48-9. Applicants should confirm the current application, inspection, registration, and supporting-document requirements before paying.

Baltimore City Hotel Tax

Baltimore City imposes a 9.5% hotel tax on covered gross amounts paid by transient guests, including short-term residential rentals booked directly or through hosting platforms. The current rate and covered transactions appear in Baltimore City Code Article 28, § 21-2.

This local tax is separate from Maryland's 6% sales and use tax. Hosts should register and file through the current City process when responsible, reconcile platform collection, and retain receipts showing both state and local amounts.

Prince George's County Short-Term Rental Licensing

Prince George's County administers host and platform licenses through its Department of Permitting, Inspections and Enforcement. The official Short-Term Rental Licensing page directs applicants to the Momentum portal and identifies the current documentation and attestations.

Permanent Residence and Application Requirements

The short-term rental property must be the host's permanent residence. The County directs hosts to complete the Maryland Homestead Property Tax Credit eligibility process before applying. Proof of ownership or a mailing address alone should not be treated as sufficient.

Current application materials require or address:

Proof of permanent-residence and ownership eligibility.
Liability insurance of at least $1,000,000.
Photos of smoke and carbon-monoxide alarms and a fire extinguisher.
A posted floor plan and escape routes.
Emergency-contact information posted in the rental.
Off-street parking availability.
Notification to adjacent neighbors and the homeowners association, if applicable.
A list of booking platforms used by the host.
Human-trafficking awareness training.
No outstanding taxes, liens, or code violations.

If a homeowners association prohibits short-term rentals, a County license does not override that private restriction. Hosts should review the governing documents before applying.

Prince George's County Fee and Term

The current DPIE fee schedule, effective March 2, 2025, lists a $198 host license fee, plus a $66 administrative fee and a 10% technology fee. Older County documents list obsolete totals such as $150 or $165. Confirm the final amount shown in Momentum before payment.

The host license expires one year after issuance. Keep the application data current and report changes as the County requires. Do not assume annual renewal is automatic.

Rental-Day, Occupancy, and Parking Limits

A single stay may not exceed 30 consecutive days under the County's short-term rental program.
When the owner does not occupy the rental, short-term rental use is limited to 90 days per calendar year.
Owner-occupied short-term rental use is limited to 180 days per calendar year.
The County states that the categories cannot be combined to exceed the applicable maximum.
Occupancy is limited to eight renters at one time and no more than three guests per bedroom.
The County requires one parking space for every three overnight guests.

These limits are summarized in the County's Short-Term Rental FAQ. For an unusual owner-occupancy schedule or shared-space arrangement, obtain a written interpretation from DPIE.

Ocean City Rental and Short-Term Rental Rules

Ocean City requires an annual rental license and noise control permit whenever property is rented for any length of time. The Town's Division of Rental Housing defines a short-term rental as a rental for 30 consecutive days or fewer and publishes current licensing, occupancy, inspection, and zoning information.

Ocean City License Fees

The current fee schedule lists $196 for a single-family rental license including the noise control permit, plus a $50 short-term rental housing fee. The resulting short-term single-family fee is $246. Property type and classification affect the correct application, so condominium, mobile-home, timeshare, and long-term-rental owners should use the category assigned by the Town.

A license is annual. Do not accept reservations based on a prior owner's license or a past year's approval. Confirm renewal, inspection, and noise-control requirements before each rental year.

R-1 and MH District Rules

For rental dwellings in the R-1 Single Family Residential and MH Mobile Home Residential districts, Ocean City limits overnight occupancy between midnight and 7 a.m. to two persons per bedroom plus two additional persons, excluding children age ten or younger. R-1 licenses also restrict rentals to no more than four unrelated people.

The Town's Ordinance 2025-04 FAQ describes a five-consecutive-overnight minimum for affected R-1 and MH neighborhoods and a petition/election process that can affect implementation. Because the rule is location- and process-sensitive, confirm the current status for the property's district with Ocean City Licensing before setting a minimum stay.

Ocean City and Worcester County Taxes

Ocean City properties are also subject to the tax rules for Worcester County. Effective January 1, 2026, Worcester County increased its room tax from 5% to 6% for covered short-term rentals of four months or less. The County's Room Tax page provides registration, filing, and current rate information.

The 6% Worcester County room tax is separate from Maryland's 6% sales and use tax. Hosts should verify whether a platform collects each one, identify owner-collected charges, and file any required returns through the correct state and county accounts.

Rules Elsewhere in Maryland

Maryland counties and municipalities may use rental licenses, zoning approval, occupancy permits, inspections, primary-residence limits, caps, parking rules, emergency contacts, and hotel taxes. Some jurisdictions regulate under transient accommodation, room rental, bed-and-breakfast, or rental-housing rules rather than a page titled short-term rental.

For every property, contact the county and municipality, where both exist. Verify planning and zoning, rental licensing, fire and building safety, local tax registration, and private community restrictions. If an official says no local license is required, request written confirmation and keep it with the property's records.

For operational support after legal eligibility is confirmed, review Checkmate Rentals' Airbnb management services and guide to comparing Airbnb management companies. Management does not replace the owner's state and local compliance duties.

Step-by-Step Maryland Compliance Checklist

Identify every jurisdiction. Confirm the county, municipality, zoning district, tax collectors, and any homeowners association.
Verify land-use eligibility. Ask whether short-term rental use is permitted for the property type and owner-occupancy status.
Confirm primary-residence rules. Obtain the required homestead, identification, tax, or occupancy documentation.
Complete local licensing. Obtain every rental, short-term rental, noise-control, occupancy, and business license before advertising.
Meet safety requirements. Complete inspections and maintain alarms, extinguishers, exits, floor plans, emergency contacts, and insurance.
Register for Maryland tax. Determine sales-tax registration and return duties for platform and direct bookings.
Register for local hotel tax. Identify the county or municipal rate, filing system, and exemptions.
Map platform collection. Document which state and local taxes each platform collects and what remains the host's responsibility.
Track operating limits. Calendar rental-day caps, occupancy, parking, minimum-stay, and neighbor-notice rules.
Renew on time. Track Baltimore's biennial term, Prince George's County's annual term, Ocean City's annual license, inspections, and tax returns.

Common Maryland Compliance Mistakes

Assuming there is a statewide Maryland short-term rental license or commission.
Treating a state sales-tax account as local permission to operate.
Calculating tax on the host's net payout instead of the taxable guest price.
Using an obsolete Prince George's County fee from an older checklist.
Ignoring Baltimore's permanent-residence rule or separate 9.5% hotel tax.
Using an expired Ocean City moratorium summary instead of current licensing and district rules.
Failing to verify both county and municipal requirements.
Assuming a license, grandfathered status, or platform listing transfers with a sale.

Official Sources

Bottom Line

Maryland hosts need state tax compliance and current local authorization. Confirm the property's eligibility, primary-residence status, licensing, safety, operating limits, and every state and local tax before accepting bookings. Baltimore City, Prince George's County, and Ocean City demonstrate why property-specific review is essential.

This guide provides general information, not legal or tax advice. Verify property-specific requirements with the Maryland Comptroller, responsible local governments, and qualified Maryland counsel or tax professionals.